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41650 Gardenbrook Road ● Suite 175 ● Novi, MI 48375 ● 248.596.1006 ● www.eamonline.

org ● @EAMOnline

Stacy Leick
Communications Director
Economic Alliance for Michigan
(989) 600-9928


CMS penalizes 24 Michigan hospitals

58 percent of penalized hospitals located in Southeastern Michigan

NOVI, MICHIGAN, March 6, 2019 – The Economic Alliance for Michigan (EAM), a nonprofit group comprised of
Michigan’s largest employers and unions, is concerned about the number of hospitals in Southeast Michigan being
penalized for hospital acquired conditions by the Centers of Medicare and Medicaid Services (CMS). According to a
report released by Kaiser Health News on March 1, 2019, the federal government will reduce payments to 800
hospitals nationwide, including 24 hospitals in Michigan (see list below).

Penalized hospitals will lose one percent of Medicare payments in the coming fiscal year. Estimated losses among
larger hospitals will exceed over one million dollars. The goal is to hold hospitals accountable for hospital acquired
infections such as blood clots, sepsis, bedsores and other adverse events a patient may acquire during a hospital

Overall, Michigan fared better than most states; however, there is concern over the high amount of penalized
hospitals servicing Michigan’s major population clusters in the southeastern region.

Key findings for Michigan:

• Hospitals in Michigan only accounted for 3.0% of hospitals penalized nationwide.

• 58 percent of penalized hospitals are located within the state’s southeastern region.

• Four hospitals have been penalized for the past five years straight: DMC Detroit Receiving Hospital in
Detroit, DMC Harper University in Detroit, Hurley Medical Center in Flint, and McLaren Flint,

“In this report, it’s great to see the state, as a whole, performing above the national standard for patient safety,” said
Bret Jackson, president of EAM. “However, some facilities are harming patients, increasing their need for care, and
adding to the high cost of healthcare. It is our hope to work with these hospitals to improve their outcomes.”
41650 Gardenbrook Road ● Suite 175 ● Novi, MI 48375 ● 248.596.1006 ● www.eamonline.org ● @EAMOnline

The 24 penalized hospitals in Michigan:

Penalized Hospital City

Beaumont Hospital Dearborn Dearborn
Beaumont Hospital Royal Oak Royal Oak
Beaumont Hospital Taylor Taylor
DMC Detroit Receiving Hospital Detroit
DMC Harper University Detroit
DMC Sinai-Grace Detroit
Garden City Hospital Garden City
Henry Ford Wyandotte Wyandotte
Hurley Medical Center Flint
Karmanos Cancer Center Detroit
McLaren Bay Region Bay City
McLaren Flint Flint
McLaren Lapeer Region Lapeer
Metro Health Hospital Wyoming
MidMichigan Medical Center Alpena Alpena
MidMichigan Medical Center Clare Clare
Munson Healthcare Cadillac Cadillac
Saint Mary's Health Grand Rapids
Spectrum Health Pennock Hastings
Ascension St. John River District East China
St. Joseph Hospital Tawas City
St. Joseph Mercy Hospital Ann Arbor
St. Joseph Mercy Livingston Howell
St. Mary Mercy Livonia

For additional information on the Kaiser Health News report go to https://khn.org/news/medicare-trims-payments-to-


About the Economic Alliance for Michigan

Founded in 1982, the EAM is comprised of businesses and unions working together with one clear objective –
continued growth of Michigan’s economy by inspiring job growth and strengthen Michigan’s competitiveness for
attracting companies and talent. A main objective of the EAM is bringing attention to lawmakers and the public
about the rising health care costs and its effect on the economy. The EAM is the Michigan Regional Leader for The
Leapfrog Group. Learn more about the EAM at www.eamonline.org. Follow us on Twitter @EAMOnline.